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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (29633)	10/6/2001 10:59:35 AM
From: ajtj99	Respond to of 30051

I checked the market on Thurs PM about 2:30 and couldn't believe my eyes (I'm traveling). The rise above 1600 smelled of distribution. The drop on Friday AM seemed to validate that. However, the sudden reversal also seemed a bit unreal. The market is looking more and more like the April-May run, where we had a very quick rise and some additional choppy runs. I guess that's where the Turnips get part of the 6-week scenario (and volatility) from. Looking at 1987, the SPX Low was Oct. 20 at 216, the high came very shortly afterwards on Nov. 6 at 257, and the double bottom was on Dec. 4 at 221 intra-day. Although the timing is 1-month prior on this recent crash, the highs so far are quite close to the timing of the highs in 1987. That alone is enough to put some anxiety in a long right now. Furthermore, we know the history of October is not pretty. I am not completely certain if a 1-month or 2-month difference is necessary for a textbook double bottom. If we double bottom in the end of October, would that be a true technical double bottom? What about Island Reversals? If we fill the gaps down from Sept. 10-17, would that void this chart pattern?